03 consumer insights case

Consumer Insights

BUYER BEHAVIOR, MARKETING


Outline


Need for consumer insights
Role in product development
 Message clarity


Case: Pepsi One
 Case: MasterCard
 Case: Altoids
 Case: DiGiorno Pizza



Need for Consumer Insights


Concept of value must be defined in
context of what targeted consumers
are willing to pay for
It is not always clear what features
provide value
 What is level of optimal
tradeoff?


Need for Consumer Insights


Apple introduced the versatile Newton in 1993






But for all its technological advancements, the
handwriting recognition software was flawed, and the
product flopped

Motorola Envoy, launched in 1994, also failed to
make inroads with consumers
Palm Pilot, an incremental improvement over its
predecessors, became a huge success when it
was introduced in 1996


Need for Consumer Insights


Product quality is not just the strength
of its attributes


Coca-Cola introduced an improved
formula after losing Pepsi Challenge
taste tests, but consumers rejected
New Coke


Consumer Insights:
Pepsi One


Pepsi introduced Pepsi One, a one-calorie
cola, in 1998


Addition to line of products: Pepsi, Diet
Pepsi, Mountain Dew, Diet Dew, Slice, Mug

Pepsi One fits you like a glove. You are viewed by friends as
an intellectual and a trendsetter. You go out of your way to
learn about new music, fashion, and trends. There's a
brainy side of you too. You often pull interesting facts out of
your hat and stun people with your worldliness. The same
goes for your impeccable taste in music. You also have a
spark that lights up the room when you make your entrance.
Your smile is magnetic.


Case Study: MasterCard
There are some things money
can’t buy. For everything

else there’s MasterCard.


Case Study: MasterCard




VISA


Everywhere you want to be



Life takes VISA

American Express: Membership has
its privileges


Case Study: MasterCard






Associated with acceptance at 24
million locations

Affiliated with 15,000 financial
institutions
Market share is in mid 20s, about
half that of Visa


Case Study: MasterCard
Consumer insight: Values were
changing in a fundamental way
in the late ‘90s
 More emphasis was being
placed on family and human
relations




Material consumption was
almost taken for granted


Case Study: MasterCard
Market Shares
(% Purchase Volume)
1998

2000

2001

2003

2005

MasterCard

25.50

25.60

27.61

30.7

23.9

Visa

52.25

51.75

50.38

51.4

49.6

American Express

16.30

17.25

16.14

12.3

14.3


Case Study: MasterCard






More recent versions of the
ad have off-beat humor,
irreverence
Represent departure from
nostalgic, sentimental
executions
A change in strategy?


Case Study: Altoids
Males, 20-28, working
 Smokers

 Drink coffee, beer
 Frequent restaurants or carry out
 Go to movies and clubs frequently
 Looking for empowerment



Case Study: Altoids
Drawing on a retro
image, Altoids brand is
built on the benefit of
having “curiously
strong” breathfreshening capabilities


Case Study: Altoids


Case Study: Altoids


Case Study: Altoids

Market Share

40
30
Percentage

Tic Tacs

Altoids

20
10
0

1996

2000

2001


Case Study: DiGiorno


Consumers who enjoy delivery pizza
complained of inconsistent carry
out/delivery quality






Long waits
High price
Cold when delivered

Idea of high-quality frozen pizza met with

cynicism


Case Study: DiGiorno


Pizza, which is sold in supermarket
freezer, was positioned against
delivery pizza as the frame of
reference
Higher quality ingredients
 Self-rising crust




Point of difference: “It's like getting
a $12 pizza for $5”


Case Study: Kaboom


Kaboom Porcelain Tile & Grout Restorer



Foaming bathroom cleaner – uses organic salt
as cleaning agent
Most women have 4 – 6 products on hand at all

times that are used to clean bathrooms
•

Bathroom cleaner
•
•

•
•
•
•

Heavy duty
Shower/tub/multipurpose

Daily shower
Toilet
Mirror
Floor


Case Study: Kaboom
high
Heavy Duty Specific
CLR; Lime Away; Tilex Mildew
Heavy Duty General
Comet; Tilex Soap Scum
Routine (Bi)weekly
Shower/Tub: Scrubbing Bubbles
Toilet Bowl: Lysol; Clorox

Mirror: Windex
Floor: Pine Sol; Armstrong

Light/Daily
Arm & Hammer Clean Shower
Tilex Daily Shower

FREQUENCY OF USE

Kaboom PTGR

SEVERITY OF PROBLEM
low

low

high


Case Study: Kaboom


Women who clean their
bathrooms

Frame of Reference



Bathroom cleaners

Point of Difference



From the makers of Oxi Clean

Target


Case Study: Kaboom
Borrowed brand equity
from Oxi Clean
enhances Kaboom’s
credibility.

Captures most frequently
encountered cleaning
problems in order of
priority. Allows Kaboom to
enter consideration set
and span heavy duty and
routine cleaning
segments.

From the
Makers of
Oxi Clean!
Clean Easy. Breathe Easy.

Defines brand
promise. Suggests no
fumes without
evoking unpleasant
association.
Descriptor anchors
product in midfrequency FOR.

Shower, Tub & Tile Cleaner
Aggressively Cleans:
Soap Scum, Dirt,
Hard Water Build Up,
Calcium & Lime Stains,
Rust Stains,
Grout Stains